Overview
- Freddie Mac reported the 30-year fixed mortgage rate at 6.15% in the final week of 2025, the year’s low after spending much of the year near 7%.
- National home-price growth slowed to about 1.4% year over year in October, with Case‑Shiller data showing stark splits between rising Midwestern and Northeastern metros and declining Sun Belt markets.
- Signed contracts strengthened as NAR’s pending home sales index rose 3.3% in November, the highest level in nearly three years and a sign of improving activity as rates eased.
- Affordability barriers remain steep, with first-time buyers accounting for roughly 21% of sales and the median first-time buyer age at 40, while typical down payment saving timelines stretch to about seven years.
- Most forecasts point to a modest 2026 reset with mortgage rates hovering in the low‑6% range and low single‑digit price gains nationally, though some metros are projected to see declines as supply and new construction weigh on prices.